Complaining Again

Bryan Caplan seems somewhat critical of Kip Viscusi because of his refusal to utilize risk analysis in the issue of Terrorism. Bryan ignores another form of Terrorism, which is a Result of Democracy itself. Economists and Public Officials who advocate a realistic appropriation of Resources based upon the degree of Risk, run their own risk of destruction without prior accreditation for the massive expansion of Security, if and when a future Terrorist attack takes place. A repetitive Terrorist attack with identical level of Damage as 9/11 could potentially get George W. Bush impeached before his Leave-taking, even though he enjoys some Popularity, and though the Chance of having sufficient assets in place to counteract the Terrorist attack would only confirm the inept stupidity of the Terrorists. Mothers, Fathers, and Wives do not respond well to rational excuse, especially when they can reinforce each others’ deviant attitude; check out the Miners’ families in Utah.

Tim Duy and Dave Iverson may have misinterpreted the Fed position, and it is my hope that Ben Bernanke and Crowd do not make a misstep like a Rate cut, though the pressures will be strong. There are immense amounts of inflationary Profits coming from the Business community, and the Fed cannot afford to underwrite the only Venting process that the Economy possesses, which is excessive financing swallowing their Losses. I personally would not lower Rates for Two years, even though I believe the Rates are too high; simply because We cannot sustain a Profits picture which is too rosy, it costs too many Resources which raises Pricing, and must not supply the financing which will pay for those Resources at extreme Pricing.

Readers will think I am grouching about Past events, but the Problem has always been the Bush Tax Cuts. Their existence has always incited excessive Profits-Taking, and the financing which providing the Capitalization of excess Production. The best Economic policy would be to allow the Bush Tax Cuts to sunset. I will show how ancient and contrary I can be, still opposed to granting Investment Tax Credits for foreign Investment, and I want to sunset the Mortgage Tax Credit gradually. The trouble is, my dear Readers, that these Tax mechanisms will generate Inflation pressures in the domestic economy; they already have. What was wrong when they were first proposed, is still wrong Today. lgl